Table Of Content

s 352.7 C18tsfp 1992 TREASURE STATE ENDOWMENT PROGRAM 1992 APPLICATION GUIDELINES FOR PUBLIC FACILITIES PROJECTS STATE DOCUMENTS COLLECTION JAN 1 1993 ; kMcntana state library. I\i MONTANA DEPARTMENT OF COMMERCE """llhlmi^V""^"'^^'"""••"'"<Program 3 0864 00081816 4 MONTANA TREASURE STATE ENDOWMENT PROGRAM APPLICATION GUIDELINES MONTANA DEPARTMENT OF COMMERCE Alan G. Elliott Director Newell B. Anderson Administrator Local Government Assistance Division David Cole, Chief Community Development Bureau Robb McCracken, Manager Community Technical Assistance Program Gus Byrom, Manager Community Development Block Grant Program 1424 9th Avenue Capitol Station Helena, MT 59620 Telephone: (406) 444-3757 November, 1992 APPLICATION GUIDELINES FOR THE MONTANA "TREASURE STATE ENDOWMENT" PROGRAM TABLE OF CONTENTS Page PREFACE 3 SUMMARY 4 INTRODUCTION 5 DEFINITIONS 7 I. AMOUNT OF TSEP FUNDS AVAILABLE II. IN FISCAL YEARS 1994 AND 1995 8 ELIGIBLE APPLICANTS 9 III. IV. ELIGIBLE PROJECTS AND PROJECT DEVELOPMENT COSTS 10 V. APPLICATION SCORING SYSTEM AND RANKING CRITERIA 12 A. APPLICATION SCORING SYSTEM 12 B. LEGISLATIVE ORDER OF PRIORITY FOR TSEP PROJECTS 12 VI. TSEP FINANCIAL ASSISTANCE 14 A. GENERAL 14 B. FORMS OF FINANCIAL ASSISTANCE 14 C. FINANCIAL INDICATORS FOR DETERMINING APPROPRIATE LEVELS OF TSEP ASSISTANCE 15 D. MATCHING GRANTS 16 E. ANNUAL DEBT SERVICE SUBSIDIES 18 F. LOANS AT A SUBSIDIZED INTEREST RATE 19 > 1 DEFERRED LOANS FOR PLANNING AND PRELIMINARY ENGINEERING 20 H. ECONOMIC DEVELOPMENT PROJECTS 21 VII. GENERAL REOUIREMENTS FOR TSEP CONSTRUCTION PROJECTS 23 A. APPLICATION DEADLINE 23 B. APPLICATION CONTENTS AND FORMAT 23 C. PROJECT SUMMARY 23 D. PROJECT RATIONALE (PRELIMINARY ENGINEERING PLAN) 23 E. RESPONSE TO LEGISLATIVE PRIORITIES FOR TSEP PROJECTS 24 BUDGET FORM AND NARRATIVE F. G. PROJECT FINANCIAL PLAN 24 H. PUBLIC OR PRIVATE SECTOR COMMITMENTS 25 CITIZEN PARTICIPATION 25 I. J. RESOLUTION TO AUTHORIZE TSEP APPLICATION 26 K. IMPLEMENTATION SCHEDULE 26 L. MAPS 26 M. ENVIRONMENTAL IMPACT 26 N. COMPLIANCE WITH LOCAL, STATE AND FEDERAL REQUIREMENTS? 0. DOCUMENTATION 27 VIII. APPLICATION REVIEW 28 IX. TSEP ADMINISTRATION 29 APPENDICES APPENDIX A: Legislative Referendum 110 A-1 APPENDIX B: TSEP Application Fornns B-1 PREFACE These Application Guidelines explain how cities, towns and counties may apply for financial assistance underthe newTreasure State Endowment Program (TSEP) which was authorized by Montana voters with the passage of Legislative Referendum 110 on June 2, 1992. (See Appendix A for a copy of Legislative Referendum 110.) In addition to providing information regarding the types of public facilities projects and activities which are eligible for funding under TSEP, these guidelines set out the general policies forTSEP and the requirements for submitting TSEPapplications. The application forms that local governments will need to apply for TSEP financial assistance are included in Appendix B. If you have any questions regarding the Treasure State Endowment Program, contact: Local Government Assistance Division Montana Department of Commerce 1424 9th Avenue Helena, MT 59620 Telephone: (406) 444-3757 • THE TREASURE STATE ENDOWMENT PROGRAM SUMMARY 1. The Treasure State Endowment Program is a new State-funded grant and loan program designed to assist cities, towns, and counties in financing the followingeligiblepublicfacilities projects: drinkingwatersystems, wastewater treatment facilities, sanitary or storm sewer systems, solid waste disposal and separation systems, and bridges. 2. Current estimates are that approximately $1,562,000 in coal severance tax interest will be available for TSEP grants or debt service subsidies for fiscal years 1994 and 1995. 3. TSEP funding requests must be approved by the Legislature. Applications will be accepted by the Department of Commerce (DOC) on a biennial cycle beginning in the fall of 1992. The deadline for 1992 TSEP applications is December 31, 1992. 4. Because of the limited time available for application for the first year of the TSEP program, DOC will automatically consider as TSEP applications those applicationsforTSEP-eligible publicfacility projectswhich havebeensubmitted to and accepted by the Department of Natural Resources and Conservation (DNRC) Water Development Program and the DOC Community Development Block Grant (CDBG) Program. DOC may request additional information from these applicants to address specific TSEP requirements. 5. DOC is required to review TSEP project proposals and prepare a list of recommended projects, giving preference based on nine statutory priorities. DOC is also required to recommend the form of financial assistance for each project. 6. Matching grants, debt service subsidies, or loans will be recommended on a competitive basis for local governments which demonstrate serious needs and limited financial capacity to meet those needs. 7. The amount of funding available for loans underTSEP will be dependent upon a legislatively approved bond issue. The 1993 Legislature would have the option of adding loans authorized under TSEP to the list of loans approved under the DNRC Water Development Program. The loans for these projects could be funded through a state bond issue backed by coal severance tax receipts. Given the existing commitments foroutstanding bonds and currently authorized projects, a total of approximately $33 million in bonding capacity would be available to the 1993 Legislature to authorize loans for additional projects through the DNRC Water Development Program and TSEP. Loan terms and conditions would likely be comparable to those established for the DNRC Water Development Program.